Harworth Share Discussion Threads

[lageraemia] 14/3/2023 09:36

Low debt and lots of liquidity margin. Nice

[solarno lopez] 14/3/2023 07:50

It certainly does

[ingham87] 14/3/2023 07:44

Excellent update. This remains a great investment for the long term investor

[ingham87] 31/1/2023 07:30

Excellent update for this significantly undervalued business

[hugepants] 05/1/2023 22:16

Perking up very slightly here. Don't know if this is the reason;


NAV is 203.1p although their preferred metric is EPRA NDV (net development value) which is 224.7p

[lageraemia] 05/11/2022 11:10

Low debt, presumably not imminently due roll over.....no obvious news re rent impairments or reduced income.

This all looks like a potential opportunity to pick up assets cheaper, IF that's what actually happened to asset prices.

[loafofbread] 05/11/2022 10:31

Recent results gave an asset value of £2.24 and we have now collapsed to £1.05.

Any thoughts?

[lageraemia] 18/10/2022 20:38

There's slowing land sales, and there's the NO land sales.....House sales will continue given the pent up demand, even if finished unit prices fall.

Also commercial/distribution and industrial units with the current pound and EU situations will be fairly resilient.

I'm also thinking about the relative strength of the company allowing the acquisition of income generating assets at fire sale prices.

[boonkoh] 18/10/2022 20:31

All sorts of builders set to slow down land purchases for the next 6 months. Look at Bellway and Barratt statements recently.This is bad for Harworth as there will be no sales and cash flow to fund the investment required to get land prepped for sale. The development pipeline will have to slow.Only good thing is the low debt and interest costs, covered by existing rents. But those might fall too... If vacancies for commercial and industrial units rise, and rent renewals come under pressure.No solvency risks though. So if you like the price, buy now to tuck away for a few years.

[riverman77] 30/9/2022 09:52

On a similar discount to the diversified REITs (some pushing 50%) but feel HWG will be better placed than those. Firstly, has very little debt. Secondly, doesn't really produce much of a yield since most of its assets held in land - in theory this should make it less sensitive to rising interest rates. Next, returns typically driven by the company's own actions (getting developments through) rather than being reliant on market yield compression. Finally, my sense is that land prices will prove more resilient than both commercial and residential property if we do see a crash - there is no risk of tenant defaults or sellers having to liquidate assets, while there remains an acute shortage of housing.

[elsa7878] 27/9/2022 12:31

Excellent company and waiting to buy at under 100.

[lageraemia] 27/9/2022 12:02

The asset sales for the past few years have all been significantly ahead of book value without this really being reflected in the stated NAV.

The Build to Rent portfolio is also interesting and should support income, with future capital growth potential I assume.

[elsa7878] 27/9/2022 11:35

Agreed but the income pays the bills, the sales of land parcels etc generates the profits and the NAV.

[lageraemia] 27/9/2022 11:13

It won't depress the income though......

It's not like Harworth has been valued on NAV thus far anyway.

[elsa7878] 27/9/2022 10:30

Property going to be killed. 5% + mortgages soon (land values will fall to compensate) and even though H has little debt the cost of capital will depress all commercial property values too.
Look at all the big boys. British Land etc. Hammered.

[its the oxman] 27/9/2022 10:28

Like every other property stock then

[lageraemia] 27/9/2022 10:25

Bloody hell.

This is potentially becoming the bargain of century?

[solarno lopez] 15/9/2022 08:21

Double bottom !

[lageraemia] 14/9/2022 11:45

More director buys! Nice

[lageraemia] 13/9/2022 18:31

I don't think the coal mines will re-open old boy. There's a short and reducing list list of places the stuff can be used to make electricity too.....

[apollocreed1] 13/9/2022 17:01

I thought these were excellent results.
As a side point, any chance that they could reopen the coal mines to help with the energy crisis?

Harworth Group PLC - Rotherham, South Yorkshire-based land regenerator - For the first half of 2022, pretax profit rises 29% to GBP98.8 million from GBP76.5 million a year before, driven by an increase in the fair value of investment properties to GBP85.3 million from GBP66.5 million, as well as sharp revenue growth to GBP62.6 million from GBP18.8 million through an acceleration in serviced land sales. As at June 30, net asset value per share is 203.1 pence, up 21% from 167.8p the same date a year prior, while the portfolio value increased 16% to GBP888.7 million from GBP765.7 million at the end of December. Declares interim dividend of 0.404 pence per share, up from 0.367p a year before.

[ingham87] 13/9/2022 11:41

Great comment, that said, I didn't even think that nonsense dignified a reply.

[lageraemia] 13/9/2022 08:05

Profit warning? If that's a profit warning, its a macro-economic warning and EVERYTHING should collapse!

"As we enter a more uncertain economic period, we continue to maintain a strong balance sheet and financial position, with significant available liquidity to fund the delivery of our strategy, namely £144.4m as at 30 June 2022 (31 December 2021: £128.0m), following the signing of a new £200m RCF earlier in the year. Our net loan to portfolio value at period-end was 7.6% (31 December 2021: 3.4%), one of the lowest in our sector, affording us a high degree of flexibility and resilience."

That says to me 'if there is severe recession, we'll snap up the assets of others on the cheap'.

[george stobbart] 13/9/2022 07:24

will the share price collapse given disaster results, profit warning and softening outlook?